https://www.taxtmi.com/caselaws?id=106345 Section 442 of the Companies Act, 1956 confers a discretionary power to stay a civil suit where the pending proceedings bear on winding-up matters, and that power is not to be exercised mechanically. The relevant inquiry is not whether the suit seeks a direct decree against the company, but whether its claims affect the company's liabilities or the winding-up petition. The Delhi HC held that the scope of section 442 is broader than section 10 of the Code of Civil Procedure, 1908, and, on the pleadings and overlapping facts, stayed the suit because it had a direct bearing on the winding-up proceedings. en-us Thu, 30 May 2002 00:00:00 +0530 Tue, 13 Mar 2012 17:34:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106345 Section 442 of the Companies Act, 1956 confers a discretionary power to stay a civil suit where the pending proceedings bear on winding-up matters, and that power is not to be exercised mechanically. The relevant inquiry is not whether the suit seeks a direct decree against the company, but whether its claims affect the company's liabilities or the winding-up petition. The Delhi HC held that the scope of section 442 is broader than section 10 of the Code of Civil Procedure, 1908, and, on the pleadings and overlapping facts, stayed the suit because it had a direct bearing on the winding-up proceedings. Case-Laws Companies Law Thu, 30 May 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106345